D. 7. An individual is facing a lottery over the prizes ($1, $4, $10). If there is a 50% chance the individual receives $10 in the lottery, with what probability must the individual receive $4 to ensure the expected value of the lottery is $6? chech A. 0 B) 16.66% C. 33.33% D. 66.66% E. 100%
D. 7. An individual is facing a lottery over the prizes ($1, $4, $10). If there is a 50% chance the individual receives $10 in the lottery, with what probability must the individual receive $4 to ensure the expected value of the lottery is $6? chech A. 0 B) 16.66% C. 33.33% D. 66.66% E. 100%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Give typing answer with explanation and conclusion
![D. She will nev
7. An individual is facing a lottery over the prizes ($1, $4, $10). If there is a 50% chance the
individual receives $10 in the lottery, with what probability must the individual receive $4
to ensure the expected value of the lottery is $6?
A. 0
B 16.66%
C. 33.33%
D. 66.66%
E. 100%.
chech
hy the UNM utility function,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0fae615d-1831-46d4-a61f-e84092ec84ca%2F2231beed-ad26-41fa-bde8-4721a870ca44%2Fjxl8bfn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:D. She will nev
7. An individual is facing a lottery over the prizes ($1, $4, $10). If there is a 50% chance the
individual receives $10 in the lottery, with what probability must the individual receive $4
to ensure the expected value of the lottery is $6?
A. 0
B 16.66%
C. 33.33%
D. 66.66%
E. 100%.
chech
hy the UNM utility function,
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